Business Context and Reporting Period
This Form 8-K is filed by Jolley Marketing, Inc. (noted as Creative Medical Technology Holdings, Inc. in metadata) on August 7, 2012. The report discloses a change in the company's principal certifying accountant effective on or about August 1, 2012.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on the administrative change of the auditing firm.
Material Changes
- Accountant Change: The company dismissed Child, Van Wagoner & Bradshaw, PLLC (CVB) as its principal accountant because CVB ceased its accounting practice for SEC reporting companies.
- Successor Engagement: The company engaged Anderson Bradshaw PLLC, a successor firm to CVB, as the new principal accountant for the fiscal year ending December 31, 2012, and interim periods.
- Approval: The Board of Directors approved the decision to change accountants.
Outlook, Risks, and Contingencies
- Going Concern: Reports from the former accountant (CVB) for the past two years contained a qualification indicating substantial doubt about the Company's ability to continue as a going concern.
- No Disagreements: There were no disagreements between the company and CVB regarding accounting principles, financial statement disclosure, or auditing scope.
- Internal Controls: CVB did not advise the company that internal controls necessary for reliable financial statements were missing.
- Consultations: The company did not consult with the new firm (Anderson Bradshaw) regarding accounting principles or audit opinions prior to engagement.
Investor Verification Checklist
- Verify the status of the "substantial doubt about going concern" qualification noted in prior audits.
- Confirm the continuity of audit work between CVB and Anderson Bradshaw PLLC.
- Review the letter from CVB (Exhibit 16.1) for any additional context on the cessation of their practice.
- Check subsequent filings for the first financial statements audited by Anderson Bradshaw.